If Your Not Keeping Up with This You Should Be!

[Franz Kafka]

Pretty much!

Take away the tax advantages like the libs want and there wont be much reason for small biz owners to keep 401Ks around.

It used to be a big employee retention tool. But its increasingly becoming a liability thats not worth the time/effort/risk if its not enough benefit to them...


One of the kind of new claims against Trustees these days is that the Fixed Account isnt a suitable QDIA... it needs to be in a risk "controlled" equity fund (aka: Target Date or Risk Based) since historically over a long period this has outperformed fixed rates...

That means a person who has taken no interest or effort in choosing an investment for their 401k automatically has their premium put at risk....

How not being able to loose any money is not suitable for someone who doesnt give a sh#t, ijdfk....

DO WHAT WE TELL YOU TO DO BECAUSE WE KNOW WHAT IS GOOD FOR YOU.

 

[scagnt83]

DO WHAT WE TELL YOU TO DO BECAUSE WE KNOW WHAT IS GOOD FOR YOU.

Unfortunately, that is the definition many in the Fiduciary world consider a Fiduciaries Responsibility... do what is "best" for the client.

So what exactly is "best"?

I have been given the argument before by a prominent figure in the Fiduciary world, that even going against the beneficiaries risk tolerance is the suitable thing to do, because ultimately its the "best thing" for the beneficiary. Basically "modern investment theory is always right".
But who has the right to say what exactly that is? Even more, why should it be right to force it upon everyone, even if its against their wishes?

 

[iceco1d]

No argument from me that the 401K space needs help.

Franz - I was away yesterday, are there any questions in your post(s) that you actually want me to answer, or is it all just conjecture at this point?

 

[Franz Kafka]

No argument from me that the 401K space needs help.

Franz - I was away yesterday, are there any questions in your post(s) that you actually want me to answer, or is it all just conjecture at this point?

Never mind. I'm tired, too, especially with all that extra solar flare and all.

 

[CaNewAgent]

Even casinos discourage people from playing with money they can't afford to lose. The market was never meant for retirement plans - such was unheard of until recent decades. It has always been meant for wealthy speculators and traders who had money they could afford to lose. The next swing of market meltdown is on its way. Hopefully this time around they get the message (doubt it).

The number one reason people lose money in the stock market is they don't get good advice. They panic when their investment drops and sell at a loss. They put their money into a different vehicle for awhile and after the market has turned around they get back in, buying high.

This is the reason the average MF investor gets a return that is much lower than the fund's actual performance.

 

[Norwayguy]

The number one reason people lose money in the stock market is they don't get good advice. They panic when their investment drops and sell at a loss. They put their money into a different vehicle for awhile and after the market has turned around they get back in, buying high.

This is the reason the average MF investor gets a return that is much lower than the fund's actual performance.

That and the client is calculating his compounded return and comparing it to the funds average annual return.

 

[Franz Kafka]

The number one reason people lose money in the stock market is they don't get good advice. They panic when their investment drops and sell at a loss. They put their money into a different vehicle for awhile and after the market has turned around they get back in, buying high.

This is the reason the average MF investor gets a return that is much lower than the fund's actual performance.

The number one reason people lose money in casinos is they don't leave the table when they hit their profit goals and their loss limits. See where I'm going with this? We're talking about human frigging beings, right?